Tata Motors, India's largest vehicle maker, will set up a new manufacturing plant for the Ace and for other similar products, as it tries to defend its share in the segment from increased competition.
The Ace, launched five years ago, is a light truck catering to the last-mile segment within city and rural areas. The company makes the product at Pantnagar in Uttarakhand, where production is reaching maximum capacity.
Ravi Pisharody, president, commercial vehicle business unit, said, "We have not decided yet on how to put more capacity in place for the Ace as the current facility is reaching its peak. We will have to look at ways to expand and this can be well through another plant."
Further, the production line at Pantnagar, which also makes the Nano, will be freed extensively in the coming months to make way for the Ace. The company had altered this facility to make 50,000 units of the Nano per annum before the small car’s mother plant came on stream earlier this month.
The company, thus, hopes to increase production of the Ace by 28 per cent to 22,000-23,000 units per month from 17,000-18,000 units per month at present. In addition, it plans to sell 150,000 units of the Ace cargo (up from 110,000 units last year ) and a further 70,000-75,000 units of Magic (from 48,000-50,000 units last year).
Tata Motors will have a nationwide launch of the Magic Iris, a multi-seater mini vehicle, by September-October, followed by the cargo version of the same model before the end of the financial year.
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The Magic Iris is priced at Rs 2.11 lakh in Jaipur, where the company has sold 40-50 units.
Meanwhile, the company is planning to use the South African plant, bought from Nissan nearly four years ago, to make medium and light commercial vehicles. Local assembly will commence before the end of the financial year.
Though finer details of the plant are being worked out, it could have an initial capacity of 3,000-4,000 units per year. Currently, the company sells nine models of cars, pick-ups and SUVs in South Africa through a subsidiary company.